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Screenshot of a breaking news alert e-mail from Q2 2017
Shortly after announcing a 10-month ban on Mr Jia Zhen, former China Merchants Securities (HK) Co., Limited (CMSHK) account executive, the Securities and Futures Commission (SFC) of Hong Kong announces a similar penalty for Mr Ng Hongs.
Mr Ng Hongs is also a former account executive of CMSHK, a subsidiary of subsidiary of China Merchants Securities CO., LTD. (SHA:600999). He is banned from re-entering the industry for 10 months – from March 12, 2016 to January 11, 2017 over violating the SFC’s Code of Conduct.
The regulator found that Ng obtained a written authorization from his client which authorized him to conduct trades on a discretionary basis in the client’s account. But he did not secure CMSHK’s management approval before entering into such arrangement with the client and effected transactions for the client on a discretionary basis between August 2010 and September 2011 without CMSHK’s knowledge.
The regulator states that as a result of Ng’s actions, the client’s interests were prejudiced. A written authorization which was signed by the client without the firm’s knowledge and approval did not provide the client with any protection as the client’s securities account was not designated as a discretionary account by the firm and the operation of the client’s securities account could not be adequately supervised by the company.
You can view the full announcement from the Hong Kong regulator by clicking here.